In the Turkish Republic of Northern Cyprus (TRNC), an amendment concerning the accommodation and meal allowances granted to foreign nationals brought from countries with which the TRNC has no labour-force agreement has entered into force. This amendment has been made within the scope of the 1975 Minimum Wages Law. The new regulation is intended to eliminate income inequality between local and foreign employees working on the minimum wage.
Under the new regulation, the total accommodation and meal support that employers may provide to foreign national employees (workers brought from countries that have no labour agreement with the TRNC) must not exceed 40 % of the employee’s monthly gross minimum wage. This support is separately capped at 20 % for accommodation and 20 % for meals. For example, assuming a gross minimum wage of TRY 20,000, the maximum total support would be TRY 8,000, of which no more than TRY 4,000 may be allocated for accommodation and TRY 4,000 for meals. Employers are required to sign a “Life-Support Agreement” as an addendum to the employment contract with their employees.
Employers who deduct amounts exceeding the stated percentages are deemed to have committed an offence under the law. In such cases, employers may face a fine of up to four times the monthly gross minimum wage or imprisonment for up to one year. Furthermore, during court proceedings, an additional fine of up to twice the daily minimum wage may be imposed for each day the offence continues.
In addition, the court may order employers who exceed these limits to compensate employees for any loss of wages incurred. Thus, employees will have the right to receive from the employer both the full minimum wage that should have been paid and the amount of any excessive deduction.
It is of great importance for employers to comply with these legislative changes in order to avoid any criminal or legal sanctions.
